Dow down 1000, as China devalues currency

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Antrax
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05 Aug 2019, 3:50 pm

So far the trade war hasn't had too much of an effect on the economy, but if it continues to escalate it will be an economic disaster.


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Antrax
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06 Aug 2019, 3:46 am

And the U.S. officially labels China a currency manipulator. Not sure what implications that has, but things could get very rocky, very fast.


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cyberdad
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06 Aug 2019, 4:02 am

China punishes Trump by punishes the rest of us...thanks Donald



Antrax
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06 Aug 2019, 11:02 am

Yuan back above 7:1 which has people breathing easier. It's funny we label them a currency manipulator when they devalue their currency, but once they manipulate back to a value we're comfortable with everyone stands down (for now).


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Roboto
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06 Aug 2019, 11:05 am

When the US does the same thing it’s not manipulation, it’s “quantitative easing.” What a joke. :)



Last edited by Roboto on 06 Aug 2019, 11:19 am, edited 1 time in total.

Darmok
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06 Aug 2019, 11:15 am

It's pretty widely expected that China will try to specifically damage the US economy in order to harm Trump's reelection.

Russia's interference in US politics is pretty trivial (except insofar as they collaborate with the Left to sow discord). China, on the other hand, is a major adversary.

Fortunately, China has a pretty serious internal revolution on its hands right now in Hong Kong. Some really brave people over there fighting for freedom. But they're fighting against, you know, Communists, so the media doesn't really like them.


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Antrax
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Yesterday, 10:11 am

China announced a new tariff 5-10% on 75 billion in goods. https://www.cnn.com/2019/08/23/business ... index.html

No end in sight to this ever escalating Trade War. Recession expected sometime in the next two years.


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Roboto
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Yesterday, 2:34 pm

Trade War is a staged and controlled piece of theater to distract from the reality that fiat currencies always fail. There is an economic bubble that started in 1913 with the implementation of fractional reserve banking that requires exponentially increasing population/customers of a debt based currency to sustain the exponentially increasing amount of debt based currency that is mandatory for the system to maintain validity.

It isn't possible to last forever. People forget/don't realize that the US (Kissingers) and China set up this trade deal in the 70's and the world rulers (not the politicians) are playing both sides while they continue to devalue and inflate the currency into their own bank accounts.



Antrax
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Yesterday, 3:07 pm

Roboto wrote:
Trade War is a staged and controlled piece of theater to distract from the reality that fiat currencies always fail. There is an economic bubble that started in 1913 with the implementation of fractional reserve banking that requires exponentially increasing population/customers of a debt based currency to sustain the exponentially increasing amount of debt based currency that is mandatory for the system to maintain validity.

It isn't possible to last forever. People forget/don't realize that the US (Kissingers) and China set up this trade deal in the 70's and the world rulers (not the politicians) are playing both sides while they continue to devalue and inflate the currency into their own bank accounts.


More incoherent ramblings about the dangers of fiat currency. You do realize fiat currency has no intrinsic value, and that it doesn't matter whether the overall money supply has 100 dollars or 100 trillion dollars it's worth the same.

The only danger of fiat currency is that a government irresponsibly and rapidly changes the money supply introducing instability to the currency.


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Roboto
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Today, 2:28 pm

Antrax wrote:
Roboto wrote:
Trade War is a staged and controlled piece of theater to distract from the reality that fiat currencies always fail. There is an economic bubble that started in 1913 with the implementation of fractional reserve banking that requires exponentially increasing population/customers of a debt based currency to sustain the exponentially increasing amount of debt based currency that is mandatory for the system to maintain validity.

It isn't possible to last forever. People forget/don't realize that the US (Kissingers) and China set up this trade deal in the 70's and the world rulers (not the politicians) are playing both sides while they continue to devalue and inflate the currency into their own bank accounts.


More incoherent ramblings about the dangers of fiat currency. You do realize fiat currency has no intrinsic value, and that it doesn't matter whether the overall money supply has 100 dollars or 100 trillion dollars it's worth the same.

The only danger of fiat currency is that a government irresponsibly and rapidly changes the money supply introducing instability to the currency.


Sorry for you that my ramblings seem incoherent. It only shows your lack of depth on the topic. If you've been paying attention you would notice that the Federal Reserve has been rapidly adding to the money supply and introducing instability over the past several years. If you had a deeper knowledge on it you would understand why I say that 1913 federal reserve act is the major catalyst in this. You're call out of incoherence on my part is only a display of ignorance of your own understanding.



Antrax
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Today, 3:06 pm

Roboto wrote:
Antrax wrote:
Roboto wrote:
Trade War is a staged and controlled piece of theater to distract from the reality that fiat currencies always fail. There is an economic bubble that started in 1913 with the implementation of fractional reserve banking that requires exponentially increasing population/customers of a debt based currency to sustain the exponentially increasing amount of debt based currency that is mandatory for the system to maintain validity.

It isn't possible to last forever. People forget/don't realize that the US (Kissingers) and China set up this trade deal in the 70's and the world rulers (not the politicians) are playing both sides while they continue to devalue and inflate the currency into their own bank accounts.


More incoherent ramblings about the dangers of fiat currency. You do realize fiat currency has no intrinsic value, and that it doesn't matter whether the overall money supply has 100 dollars or 100 trillion dollars it's worth the same.

The only danger of fiat currency is that a government irresponsibly and rapidly changes the money supply introducing instability to the currency.


Sorry for you that my ramblings seem incoherent. It only shows your lack of depth on the topic. If you've been paying attention you would notice that the Federal Reserve has been rapidly adding to the money supply and introducing instability over the past several years. If you had a deeper knowledge on it you would understand why I say that 1913 federal reserve act is the major catalyst in this. You're call out of incoherence on my part is only a display of ignorance of your own understanding.


Or perhaps it is a failure of understanding on your part. If you could actually explain yourself we'd be able to determine which it is.

Stating fiat currencies always fail is not a standard economic position. The standard position is that low levels of inflation caused by nominal small increases in the money supply is the healthiest form of an economy (at least one that is growing). This does not as you have previously stated result in an exponentially exploding money supply, as while the nominal value increases to infinity, the nominal value is irrelevant. Only the nominal rate of change is relevant as it affects ability to accurately set prices.

Stating that trade war is a controlled distraction is straight conspiracy theory. The rationale for the trade war is simple. Trump made a politically motivated stupid economic policy decision, and is too stubborn to back down.

I'm aware of current Fed policy of using historically low interest rates and the inflationary effect that has if unchecked.

Now it's true I am not a foremost expert on such matters. Just a hobbyist with a mathematical/science/engineering background, so MAYBE I am missing something.

However, if you can't explain your self there is no way for me to determine what I am missing if anything. It is my opinion that you misunderstand fiat currency and are afraid of a mathematical result (the nominal supply increasing to infinity) that has no economic value. I am not going to change that opinion unless I am shown it is incorrect.


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